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THE EMPLOYEES' STATE INSURANCE  ACT,1948 This Act may be called the Employees' State Insur ance Act,1 948. (2) It extends to the whole of India It shall apply, in the fir st instance, to all factories Appropriate Government may extend the provis ions of this Act to any other establishment

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THE EMPLOYEES' STATE INSURANCE

 ACT,1948This Act may be called the Employees' State

Insurance Act,1948.

(2) It extends to the whole of IndiaIt shall apply, in the first instance, to all factories

Appropriate Government may extend the

provisions of this Act to any other establishment

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COVERAGE «The ESI Act 1948 applies to

´ Non ² seasonal Factories using power in andEmploying ten (10) or More persons

´ Non ² seasonal and non- power using factoriesand establishments employing twenty(20) ormore persons

´ Employees of the Factories and Establishmentsin receipt of wages not exceeding Rs.10,000 /-Per month are covered under this Act.

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It has also been extended upon shops,

hotels, restaurants, roads motor transport

under takings, equipment maintenance

staff in the hospitals.

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THE ESI SCHEME TODAY

No.of implemented Centres 677

No.of Employers covered . 2.38 lacs

No.of Insured persons 85 lacs

No.of Beneficiaries 330 lacs

No.of Regional offices/SRO·s 26

No.of ESI Hospitals / Annexes 1453

No.of Panal Clinics 2950

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I] DEFINITIONS

1) ´Wages" means -----

all remuneration paid or payable, in cash to an employee, if 

the terms of the contract of employment, express or implied,

were fulfilled and includes any payment to an employee inrespect of any period of authorized leave, lock-out, strike

which is not illegal or lay -off and other additional

remuneration, if any, paid at intervals not exceeding two

months, but does not include

(a) any contribution paid by the employer to any pension

fund or provident fund, or under this Act;

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(b) any travelling allowance or the value of any

travelling concession;

(c) any sum paid to the person employed to defray

special expenses entailed on him by the nature of hisemployment; or 

(d) any gratuity payable on discharge

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W AGES FOR ESI CONTRIBUTIONS

TO BE DEEMED ASW AGESTO BE DEEMED ASW AGES

Basic payBasic pay

Dearness allowanceDearness allowance

House rent allowanceHouse rent allowance

City compensatory allowanceCity compensatory allowance

Overtime wages (but not to be takenOvertime wages (but not to be taken

into account for determining theinto account for determining thecoverage of an employee)coverage of an employee)

Payment for day of restPayment for day of rest

Production incentiveProduction incentive

Bonus other than statutory bonusBonus other than statutory bonus

Nightshift allowanceNightshift allowance Payment for unPayment for un--substituted holidayssubstituted holidays

Meal / food allowanceMeal / food allowance

Suspension allowanceSuspension allowance

Lay off compensationLay off compensation

Children education allowanceChildren education allowance Heat, Gas & Dust allowanceHeat, Gas & Dust allowance

NOT TO BE DEEMED ASW AGESNOT TO BE DEEMED ASW AGES

Contribution paid by the employer to anyContribution paid by the employer to any

Sum paid to defray( discharge, clear ) Sum paid to defray( discharge, clear ) 

special expensesspecial expenses

Gratuity payable on dischargeGratuity payable on discharge

Pay in lieu of notice retrenchmentPay in lieu of notice retrenchment

Benefits paid under the ESI SchemeBenefits paid under the ESI Scheme Encashment of leaveEncashment of leave

Payment of Payment of InamInam which does mean part of which does mean part of 

employmentemployment

Washing allowance for livery ( uniform)Washing allowance for livery ( uniform)

Conveyance Amount towardsConveyance Amount towardsreimbursement for duty related journeyreimbursement for duty related journey

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"dependant" means any of the following relatives of a deceased

insured person, namely,-

(i) a widow, a minor legitimate or adopted son, an unmarried legitimate or

adopted daughter .

(ia) a widowed mother .

(ii) if wholly dependent on the earnings of the insured person at the time

of his death, a legitimate or adopted son or daughter who has attained the

age of eighteen years and is; infirm ( Sick).

(iii) if wholly or in part dependent on the earnings of the insured person at

the time of his death -

(a) a parent other than a widowed mother,

(b) a minor illegitimate son,

an unmarried illegitimate daughter or

a daughter legitimate or adopted or illegitimate if married and a minor or

if widowed and a minor

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(c) a minor brother or an unmarried sister or a

widowed sister if a minor,

(d) a widowed daughter-in-law,

(e) a minor child of a pre-deceased son,

(f) a minor child of a pre-deceased daughter where

no parent of the child is alive, or

(g) a paternal grand-parent if no parent of the

insured person is alive

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"employee" means *

any person employed for wages in or in connection

with the work of a factory or establishment to which

this Act appliesPersons employed through contractors also included

but does not include

(a) any member of the Indian naval, military or air

forces; or(b) any person so employed whose wages (excluding 

remuneration for overtime work) exceed Rs.10,000/-

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"family" means all or any of the following relatives of an insured

person, namely,-

(i) a spouse;

(ii) a minor legitimate or adopted child dependent upon the

insured person;

(iii) a child who is wholly dependent on the earnings of the

insured person and who is-

(a) receiving education, till he or she attains the age of twenty-

one years,

(b) an unmarried daughter;

(iv) a child who is infirm (sick) by reason of any physical or mental

abnormality or injury and is wholly dependent on the earnings of 

the insured person, so long as the infirmity continues;

(v) dependent parents;

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"employment injury" means *

a personal injury to an employee caused by

accident

or

an occupational disease arising out of and in the

course of his employment, being an insurable

employment,

whether the accident occurs or the occupational

disease is contracted within or outside the

territorial limits of India

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"permanent partial disablement" means

such disablement of a permanent nature,

which reduces the earning capacity of an employee inevery employment

which he was capable of undertaking at the time of the

accident resulting in the disablement:

Every injury specified in Part II of the Second Scheduleshall be deemed to result in permanent partial disablement

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"permanent total disablement" means such

disablement of a permanent nature which incapacitates an

employee for all work which he was capable of performing 

at the time of the accident resulting in such disablement:

permanent total disablement shall be deemed to result

from every injury specified in Part I of the Second Schedule

or from any combination of injuries specified in Part II

thereof where the aggregate percentage of the loss of 

earning capacity, as specified in the said Part II againstthose injuries, amounts to one hundred per cent or more

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"temporary disablement" means a condition resulting 

from an employment injury

which requires medical treatment and renders anemployee, as a result of such injury, temporarily incapable

of doing the work which he was doing prior to or at the time

of the injury

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"immediate employer", ---- means a person

who has undertaken the execution, on the premises of a

factory, or an establishment to which this Act applies or

under the supervision of the principal employer or his

agent, of the whole or any part of any work which is part of 

the work of the factory or establishment, or incidental to

the purpose of, any such factory or establishment,

and includes a person by whom the services of an

employee who has entered into a contract of service withhim are temporarily lent or let on hire to the principal

employer and includes a contractor;

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"principal employer" means± 

(i) in a factory, the owner or occupier of the factory, and

includes the managing agent of such owner or occupier, the

legal representative of a deceased owner or occupier, and

where a person has been named as the manager of the

factory under the Factories Act, 1948; the person so named;

(ii) in any establishment under the control of any department of 

any government in India, the authority appointed by such

government in this behalf or where no authority is so

appointed, the head of the department;

(iii) in any other establishment, any person responsible for the

supervision and control of the establishment;

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2 A. REGISTRATION OF FACTORIES AND

ESTABLISHMENTS

It is the statutory responsibility of the employer. The owner

of a factory / est. to which the Act applies for the first time

is liable to furnish to the appropriate regional within 15 days

a declaration of registration in Form 01.

On receipt of the form the regional office will examine the

coverage and after its is satisfied that the Act applies to the

factory/est. will allot a code number to the employer

The principal employer should get the declaration form

filled in by every employee covered under the Scheme.

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II. AUTHORITIES

´ Different bodies are constituted for the

implementation and enforcement of the

provisions of the Act. The bodies are

´ 1) Corporation

´ 2) Standing Committee and

´ 3) Medical Benefit Council

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ESI CORPORATION

´ The Corporation shall be a body corporate by

the name of Employees' State Insurance

Corporation having perpetual succession and a

common seal and shall by the said name sue

and be sued.

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STANDING COMMITTEE

´ A Standing Committee is constituted from among the

members of the Corp.

´ 1) to administer the affairs of the Corporation and may

exercise any of the powers and perform any of the

functions of the Corporation.

´ (2) The Standing Committee shall submit for the

consideration and decision of the Corporation all such

cases and matters as may be specified in the

regulations made in this behalf.

´ (3) The Standing Committee may, in its discretion,

submit any other case or matter for the decision of the

Corporation.

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MEDICAL BENEFIT COUNCIL

´ The Medical Benefit Council shall²

´ (a) advise the Corporation and the Standing Committee onmatters relating to the administration of medical benefit,

the certification for purposes of the grant of benefits andother connected matters;

´ (b) have such powers and duties of investigation as may beprescribed in relation to complaints against medicalpractitioners in connection with medical treatment and

attendance; and´ (c) perform such other duties in connection with medical

treatment and attendance as may be specified in theregulations.

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III. FINANCE AND AUDITEmployees' State Insurance Fund

´ (1) All contributions paid under this Act and all other moneysreceived on behalf of the Corporation is paid into a fund calledthe Employees' State Insurance Fund which is administered bythe Corporation for the purposes of this Act.

´ (2) The Corporation may accept grants, donations and gifts

from the Central or any State Government, local authority, orany individual or body whether incorporated or not, for all or anyof the purposes of this Act.

´ (3) All moneys accruing or payable to the said Fund shall bepaid into the Reserve Bank of India or such other bank as may

be approved by the Central Government to the credit of anaccount styled the account of the Employees' State InsuranceFund.

´ (4) Such account shall be operated on by such officers as maybe authorized by the Standing Committee with the approval of the Corporation.

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PURPOSES OF THE FUND

´ The Employees' State Insurance Fund shall be expended onlyfor the following purposes, namely:--

´ (i) payment of benefits and provision of medical treatment

and attendance to insured persons and, where the medical

benefit is extended to their families, the provision of such

medical benefit to their families,´ (ii) payment of fees and allowances to members of the

Corporation, the Standing Committee and the Medical

Benefit Council, the regional boards, local committees and

regional and local Medical Benefit Councils;

´ (iii) payment of salaries, leave and joining time allowances,

travelling and compensatory allowances, gratuities and

compassionate allowances, pensions, contributions to

provident or other benefit fund of officers and servants of the

Corporation

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´ (iv) establishment and maintenance of hospitals, dispensaries and

other institutions and the provision of medical and other ancillary

services

´ v) payment of contributions to any State Government, local authority

or any private body or individual, towards the cost of medical

treatment and attendance provided to insured persons including 

the cost of any building and equipment in accordance with any

agreement entered into by the Corporation;

´ (vi) defraying ( clear, settle up) the cost (including all expenses) of 

auditing the accounts of the Corporation and of the valuation of itsassets and liabilities;

´ (vii) defraying the cost (including all expenses) of the Employees'

State Insurance Courts set up under this Act;

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(viii) payment of any sums under any contract entered into for the

purposes of this Act by the Corporation or the Standing Committee

or by any officer duly authorized by the Corporation or the Standing

Committee in that behalf;

(ix) payment of sums under any decree, order or award of any Court

or Tribunal against the Corporation

(x) defraying the cost and other charges of instituting or defending

any civil or criminal proceedings arising out of any action taken

under this Act;

(xi) defraying expenditure, within the limits prescribed, on measures

for the improvement of the health and welfare of insured persons and

for the rehabilitation and re-employment of insured persons who

have been disabled or injured; and

(xii) such other purposes as may be authorised by the Corporation

with the previous approval of the Central Government.

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´ Holding of property

´ Budget estimates and accounts

´ Audit´ (1) The accounts of the Corporation shall be audited annually

by the Comptroller and Auditor-General of India and any

expenditure incurred by him in connection with such audit shall

be payable by the Corporation´ (2) He and any person appointed by him shall have the same

rights and privileges and authority in connection as in

connection with the audit of government accounts and have

the right to demand the production of books, accounts,

connected vouchers and other documents and papers and toinspect any of the offices of the Corporation.

´ (3) The accounts with the audit report thereon shall be

forwarded to the Corporation which shall forward the same to

the Central Government along with its comments on the report

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BUDGET, AUDITED ACCOUNTS AND THE ANNUAL

REPORT TO BE PLACED BEFORE PARLIAMENT

´ The annual report, the audited accounts of the

Corporation together with the report of the

Comptroller and Auditor-General of India

thereon and the comments of the Corporation

on such report and the budget as finally

adopted by the Corporation shall be placed

before Parliament

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IV. CONTRIBUTIONS

´ All employees to be insured *

´ Subject to the provisions of this Act, all

employees in factories or establishments to

which this Act applies shall be insured in the

manner provided by this Act

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RATE AND PERIOD OF CONTRIBUTION

The contribution payable under this Act in respect of anemployee shall comprise contribution payable by the employer

(hereinafter referred to as the employer's contribution) and

contribution payable by the employee (hereinafter referred to

as the employee's contribution) and shall be paid to the

Corporation.Payable such as

1. Employees· Contribution ² 1.75% of the Wages

2. Employers· Contribution ² 4.75% of the Wages

TOTAL - 6.5 % of the Wages

Employees in receipt of an average daily wage of Rs.70/- orLess, are exempted from Payment of their share of contribution

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CONTRIBUTION PERIOD AND BENEFIT

PERIOD

Contribution period Corresponding benefit

 period

1 April to 30 September 1 January to 30 June

1 October to 31 March

The contributions

payable in respect of 

each wage period shall

ordinarily fall due on the

last day of the wage

period ,

1 July to 31 December 

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BENEFIT PERIOD

If the person joined insurable

employment for the first time, say on 5th

January, his / her first contribution period

will be from 5th January to 31st March and

his corresponding first benefit will be from

5th October to 31st December

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´ Principal employer to pay contribution *

´ If any contribution payable under this Act

is not paid by the principal employer on

the date on which such contribution hasbecome due, he shall be liable to pay

simple interest at the rate of  twelve per

cent per annum or at such higher rate as

may be specified in the regulations till the

date of its actual payment :

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MANNER AND TIME LIMIT FOR MAKING

PAYMENT OF CONTRIBUTION

´ The total amount of contribution (employee·s share

and employer·s share) is to be deposited with the

authorised bank through a challan in the prescribed

form in quadruplicate on or before 21st of monthfollowing the calendar month in which the wages fall

due.

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EMPLOYER TO PAY CONTRIBUTION

The principal employer shall pay in respect of every

employee, whether directly employed by him or by or

through an immediate employer,both the employer's contribution and

the employee's contribution

Delayed payment will attract interest

Employer is entitled to recover the employees contributionby deduction from wages

Any contribution payable under this Act may be recovered

as an arrear of land revenue from the employer(45B )

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Any sum deducted by the principal employer from wages under this Act shall be deemed

to have been entrusted to him by the

employee for the purpose of paying the

contribution in respect of which it wasdeducted.

The principal employer shall bear the

expenses of remitting the contributions to theCorporation.

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RECOVERY OF CONTRIBUTION FROM

IMMEDIATE EMPLOYER

´ A principal employer, who has paid contribution in

respect of an employee employed by or through an

immediate employer, shall be entitled to recover the

amount of the contribution so paid (that is to say theemployer's contribution as well as the employee's

contribution, if any) from the immediate employer, either

by deduction from any amount payable to him by the

principal employer under any contract, or as a debt

payable by the immediate employer.

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´

The immediate employer shall maintain register of employees employed by or through him as provided in

the regulations and submit the same to the principal

employer before the settlement of any amount payable

´ In the case the immediate employer shall be entitled to

recover the employee's contribution from the employee

employed by or through him by deduction from wages

and not otherwise

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EMPLOYERS TO FURNISH RETURNS AND MAINTAIN

REGISTERS IN CERTAIN CASES

´ Every principal and immediate employer shall submit to

the Corporation or to such officer of the Corporation as

it may direct

« returns in such form and containing particulars relating to

persons employed by him or to any factory or

establishment in respect of which he is the principal or

immediate employer as may be specified in regulations

made in this behalf.

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(2) Where in respect of any factory or establishment the

Corporation has reason to believe that a return should

have been submitted but has not been so submitted, theCorporation may require any person in charge of the

factory or establishment to furnish such particulars as it

may consider necessary for the purpose of enabling the

Corporation to decide whether the factory or  

establishment is a factory or establishment to which thisAct applies.

(3) Every principal and immediate employer shall

maintain such registers or records in respect of his

factory or establishment as may be required by

regulations made in this behalf.

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INSPECTORS, THEIR FUNCTIONS AND

DUTIESESI Corporation may appoint such persons as Inspectors,as it thinks fit to³

(a) require any principal or immediate employer to furnish

to him such information as he may consider necessaryat any reasonable time enter any office, establishment,

factory examine such accounts, books and other documents

relating to the employment of persons

examine the principal or immediate employer, his agent or

servant

make copies of, or take extracts from, any register, account

book or other document

exercise such other powers as may be prescribed

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DETERMINATION OF CONTRIBUTIONS IN

CERTAIN CASES´ Where in respect of a factory or establishment no returns,

particulars, registers or records are submitted, furnished or

maintained in accordance with the provisions and any Inspector orother official is prevented in any manner by the principal orimmediate employer or any other person, in exercising his functionsor discharging his duties the Corporation may, on the basis of information available to it, by order, determine the amount of contributions payable in respect of the employees of that factory orestablishment :

´ However no such order shall be passed by the Corporation unlessthe principal or immediate employer or the person in charge of thefactory or establishment has been given a reasonable opportunityof being heard.

´ Recovery of contributions

´ Any contribution payable under this Act may be recovered as anarrear of land revenue.

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BENEFITS TO EMPLOYEES «

´ ESI Scheme Major Social Security Benefits in Cash and

Kind include «

1. Medical Benefit ² for self & Family2. Sickness Benefit ² for self 3. Maternity Benefit - for self 4. Disablement Benefit

a). Temporary Disablement Benefit ² for self b). Permanent Disablement Benefit ² for self 

5. Dependents· Benefit ² for dependents in case of deathdue to employment injury

6. Funeral Expenses ² to a person who

performs the last rites of IP

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V. BENEFITS

´ Sickness Benefit

´ Sickness signifies a state of health necessitating 

Medical treatment and attendance and abstention

from work on Medical grounds. Financial supportextended by the corporation in such a contingency

is called sickness Benefit

´ Sickness Benefit represents periodical payments

made to an Insured Person for the period of 

certified sickness after completing 9 Months in

insurable employment.

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SICKNESS BENEFIT

´ To qualify for this benefit, contributions shouldhave been payable for atleast 78 days in the

relevant contribution period.

´ The Maximum duration for availing sickness

Benefit is 91 days in two consecutive benefit

periods

´ Standard benefit rate ² this rate corresponds to

the average daily wage of an Insured person during 

the corresponding contribution period and is

roughly half of the daily wage rate.

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MATERNITY BENEFIT«

´ Maternity Benefit is cash payable to an Insuredwomen for the specified period of abstentionfrom work for confinement or mis-carriage or forsickness arising out of pregnancy,

´ ´confinementµ connotes labour after 26 weeksof pregnancy whether the result issue is alive ordead,

´ ´Miscarriageµ means expulsion of the contentsof a pregnant uterus at any period prior to orduring 26th week of pregnancy.

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MATERNITY BENEFIT«

´ Criminal abortion or miscarriage does not,

however, entitle to benefit.

´ The contribution condition is the same as for

Sickness Benefit.´ The daily benefit rate is double the sickness

Benefit rate and is thus roughly equivalent to

the full wages. Benefits is paid for Sundaysalso.

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MATERNITY BENEFIT«

´ The Benefit is paid as follows (Duration)

a). For Confinement

For a total period 12 Weeks beginning not more

than 6 weeks before the expected date of childbirth, if the insured women dies during 

confinement or with in 6 weeks thereafter, leaving 

behind the living child, the benefit continues to be

payable for the whole of the period. But the childalso die during that period, the benefit will be paid

upto and including the day of the death of the

child.

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MATERNITY BENEFIT«

b). For MiscarriageFor the period of 6 weeks following thedate of miscarriage

c). For sickness arising out of pregnancy,

confinement, Premature birth of child ormiscarriage :For an additional period or upto four weeks.

In all the cases, the benefit is paid only if theinsured women does not work for remunerationduring the period for which benefit is claimed.There is no waiting period.

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MEDICAL BENEFIT «

´ Medical Benefit means Medical care of IPs andtheir families, wherever covered for medicalbenefit.

´ The Standard medical care consists of out-doortreatment, in-patient treatment, all necessarydrugs and dressing, pathological and radiologicalspecialist consultation and care, ante-natal andpost natal care, emergency treatment etc.,

´ Out-door medical care is provided at the stateInsurance Dispensaries or Mobile Dispensariesmanned by full-time doctors (service· system) or atthe private clinics of Insurance MedicalPractitioners (Panel System)

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MEDICAL BENEFIT «

´ Insured worker and members of his family areeligible for medical care from the very first day of the worker coming under ESI Scheme.

´ A worker who is covered under the scheme for firsttime is eligible for medical care for the period of three months. If he/she contributes at least for 78days in a contribution period the eligibility is thereup to the end of the corresponding benefit period.

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DISABLEMENT BENEFIT «

a). Temporary disablement benefit :

´ In case of temporary disability arising out of anemployment injury or occupational disease.,

´ Disablement benefit is admissible to insured

person for the entire period so certified by anInsurance Medical officer / Practitioner for which IPdoes not work for wages.

´ The benefit is not subject to any contributorycondition and is payable at a rate which is not lessthan 70% of daily average wages.

´ However, not payable if the incapacity lasts for lessthan 3 days excluding the date of accident.

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PERMANENT DISABLEMENT BENEFIT «

´ In case an employment injury or occupational

disease results in permanent, partial or total lossof earning capacity,

´ Periodical payments are made to the IP for life at a

rate depending on the actual loss of earning capacity as may be determined and certified by aduly-constituted Medical Board.

´ The rates of Disablement Benefits are determined

in accordance with the provisions of Rule 57 of ESI(Central) Rules, 1991.

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DEPENDANTS¶ BENEFIT «

´ Dependents Benefit is a monthly pension payable to theeligible dependents of an insured person who dies as aresult of an Employment Injury or occupational disease

´ Beneficiaries and Duration of benefit

a). Widow / widows during life or until remarriage

b). Legitimate or adopted son until age 18 or if legitimateson is infirm, till infirmity lasts.

c). Legitimate or adopted unmarried daughter until age 18or until marriage, whichever is earlier, or if infirm, tillinfirmity lasts and she continues to be unmarried.

In the absence of any widow or legitimate child, the benefitis payable to a parent or grandparent for life, to any othermale dependent until age 18 or to an unmarried orwidowed female dependent until age 18.

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Funeral Benefit

Funeral Expenses are in the nature of lump sum payment up to a maximum of Rs.2500/- made to

defray the expenditure on the funeral of deceasedIP. The amount is paid either to the eldest survivingmember of the family or, in his absence, to the

 person who actually incurs the expenditure on the

funeral.

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BENEFIT NOT ASSIGNABLE OR

 ATTACHABLE

(1) The right to receive any payment of any benefit

under this Act shall not be transferable or assignable.

(2) No cash benefit payable under this Act shall be

liable to attachment or sale in execution of any decree

or order of any Court.

Bar of benefits under other enactmentsWhen a person is entitled to any of the benefits

provided by this Act, he shall not be entitled to receive

any similar benefit admissible under the provisions of 

any other enactment.

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BENEFITS NOT TO BE COMBINED

(1) An insured person shall not be entitled to receive forthe same period-

(a) both sickness benefit and maternity benefit; or

(b) both sickness benefit and disablement benefit for

temporary disablement; or(c) both maternity benefit and disablement benefit

for temporary disablement.

(2) Where a person is entitled to more than one of thebenefits mentioned above, he shall be entitled to choose

which benefit he shall receive.

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EMPLOYER NOT TO REDUCE W AGES,

ETC.

No employer by reason only of his liability for any

contributions payable under this Act

shall, directly or indirectly, reduce the wages

of any employee, or except as provided by the

regulations,

discontinue or reduce benefits payable to

him under the conditions of his service which are

similar to the benefits conferred by this Act

EMPLOYER NOT TO DISMISS OR PUNISH

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EMPLOYER NOT TO DISMISS OR PUNISH

EMPLOYEE DURING PERIOD OF SICKNESS,

ETC(1) No employer shall dismiss, discharge, or reduce or

otherwise punish an employee during the period the

employee is in receipt of sickness benefit or maternity

benefit, nor shall he, dismiss, discharge or reduce or

otherwise punish an employee during the period he is in

receipt of disablement benefit for temporary disablement or

is under medical treatment for sickness or is absent from

work as a result of illness duly certified in accordance with

the regulations to arise out of the pregnancy or confinement

rendering the employee unfit for work.

(2) No notice of dismissal or discharge or reduction

given to an employee during the period specified above

shall be valid or operative.

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CONSTITUTION OF EMPLOYEES'

INSURANCE COURT

(1) The State Government shall, by notification in the Official Gazette,

constitute an Employees' Insurance Court for such local area as may be

specified in the notification

If any question or dispute arises as to-

(a) whether any person is an employee within the meaning of this Act

or whether he is liable to pay the employee's contribution, or

(b) the rate of wages or average daily wages of an employee for the

purposes of this Act, or

(c) the rate of contribution payable by a principal employer in respect

of any employee, or

(d) the person who is or was the principal employer in respect of any

employee, or

(e) the right of any person to any benefit and as to the amount and

duration thereof, or

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CONSTITUTION OF EMPLOYEES'

INSURANCE COURT

(f) any other matter required to be decided by the Employees'

Insurance Court under this Act,

such question or dispute shall be decided by the Employees' InsuranceCourt in accordance with the provisions of this Act.

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 APPEAL

1) Save as expressly provided in this section, no appeal

shall lie from an order of an Employees' Insurance Court.

(2) An appeal shall lie to the High Court from an order of 

an Employees' Insurance Court if it involves substantial

question of law.

(3) The period of limitation for an appeal under this

section shall be sixty days.

PENALTIES

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PENALTIES

If any person--

(a) fails to pay any contribution which under this Act he is liable to

 pay, or 

( b) deducts or attempts to deduct from the wages of an employee

the whole or any part of the employer's contribution, or 

(c) reduces the wages or any privileges or benefits admissible to an

employee, or 

(d) dismisses, discharges, reduces or otherwise punishes an

employee, or 

(e) fails or refuses to submit any return required by the regulations,

or makes a false return, or 

(f ) obstructs any Inspector or other official of the Corporation in the

discharge of his duties, or 

(g) is guilty of any contravention of or non-compliance with any of 

the requirements of this Act or the rules or the regulations

he shall be punishable--

With imprisonment upto 1 year or with fine upto Rs. 4000/- or with

 both.

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´ If any person convicted of an offence under the

Act commits it again, he would be punished

with imprisonment upto 2 years or with fine

upto Rs. 5000/- or with both.

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Employee State Insurance ( Amendment) Bill, 2009, to carry out necessary

changes in the Employees State Insurance Act 1948.

The Bill aims at enhancing the age limit from existing 18 years to 21 years for 

the purpose of giving benefits to dependents.

It includes an apprentice as an employee, provides for benefit to workers for 

accidents happening while commuting to and from place of work and enables

Central government to make rules to decide dependency of parents on basis of 

income.

It also includes increase in public accountability by valuation of assets once in

three years from existing five years and empowers the Central government to

specify, by rules, the conditions for medical treatment of an insured person whotakes voluntary retirement.

The new measure would ensure health services to the unorganised sector 

workers under the Rashtriya Swasthya Bima Yojana.